Complain to labour commissioner against company refusal to issue you reliving order
I resigned from my previous job 1 year ago. There was a long delay from the company's side in completing the clearance process. However, I've successfully completed the clearance and have obtained a 'no dues pending' clearance last month. However, the company is refusing to issue a relieving order despite repeated written requests and reminders. What are my options here?
Company's reason to refuse issuance of the relieving order is that I did not fulfill a service obligation period that I was contracted for. However, I have paid the penalty as per our contract and have received a no dues pending clearance. Am I still liable for a breach of contract even after paying the penalty?
You have received no dues certificate
under the circumstances company cannot refuse to issue you relieving letter as you have already paid the penalty
You can send a legal notice mentioning the details and demand the relieving letter, if the notice fails to invoke response you can approach court for relief
The company 's flimsy excuses will not be maintainable in court of law hence you may initiate legal action as suggested
As you have offset the non-service of contract period by paying money and obtained no dues, the breach of contract prima facie does not arise.
G.Rajaganapathy
Advocate
High Court of Madras
- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.
- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.
- Further, no employer can refused to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.
- Since, the said company has already issued "No dues pending clearance letter "to you then they cannot refuse to issue a Relieving letter on any ground.
- You can issue a Legal notice for getting the same.
You can contact me if further suggestion needed.
Since you have already paid the penalty as per the contract and obtained a "No Dues Pending" clearance, the company cannot legally withhold your relieving letter solely on the basis of the service obligation period. Here’s what you can do:
1. Send a Legal Notice
Since repeated written requests and reminders have been ignored, you should send a formal legal notice to the company demanding immediate issuance of the relieving letter. The notice should state:
2. Lodge a Complaint with the Labour Commissioner
If the company still refuses, you can file a complaint with the Labour Commissioner or relevant authorities (depending on your employment classification). This can help in obtaining a resolution without going to court.
3. File a Writ Petition in the High Court
If the employer's refusal is unreasonable and causing hardship, you can file a writ petition under Article 226 of the Constitution before the High Court seeking:
4. Approach a Civil Court for Specific Performance
You can also file a civil suit against the company for a declaration that you are entitled to a relieving letter and seek damages for non-compliance with the contract.
Are You Still Liable for Breach of Contract?
No, once you have paid the penalty as per the contract, your obligations are discharged. The company cannot impose additional conditions beyond what was agreed in the contract. Their refusal to issue the relieving letter is unfair and legally challengeable.
If this delay is affecting your career or new employment opportunities, act swiftly with a legal notice and escalate to higher authorities if necessary. Let me know if you need assistance in drafting the notice.
Thanks and Regards,
Advocate Aman Verma
Legal Corridor
Dear Client,
As you have cleared all dues and fulfilled the contractual penalty for not completing the service obligation, your previous employer cannot withhold legally your relieving letter. You canresort to the following legal courses of action:
Send a Formal Legal Notice – Issue a legal notice through a lawyer to the company, demanding that the relieving letter be issued forthwith,especially when you can prove that all obligations are settled by 'No DuesPending' clearance.
Even though the salary has crossed ₹24,000, it is still possible to present a complaint with the Labour Commissioner regarding unfair laborpractices, for interference in obtainingthe documents.
Civil Lawsuit for declaratory relief-incase the said company continues their refusal to relinquish your relieving letter then you can start a civil legalproceeding in that local court suing for a declaratory relief or declaration of itbeing a Full and Final settlement and directing a relieving letter.
Report to HR Authorities (EPFO & NSR) – In case, issue cannot be resolved, report it to EPFO (if settlement is pending at office) or NSR authorities of National Skills Registry if relievingletter is denied since its refusal mayhamper employment history verification.
Leverage Online Platforms & Company Reputation – If options through the law are slow, put up an honest review on the platform like Glassdoor or LinkedIn, of your concern, which may make HR act in good time.
Since you have paid the contractual penalty, no breach of contract exists, and the company is acting in bad faith. Begin with a legal notice and escalate as necessary.